About Maha Al-Saadiย
Maha Al-Saadi’s focus lies on aligning Qatarโs financial market regulation with international regulatory standards. The QFC itself acts as an onshore jurisdiction operating under English common law with an international team of currently ~150 employees.
With around 18 years of financial services industry experience, she specializes in regulatory compliance, advocacy, and policy. Holding an LL.M in Financial Law, she spent much of her career at Deutsche Bรถrse, where she became strongly involved in blockchain and digital assets. She has also held digital asset-related positions at Trade Republic Bank GmbH and Bankhaus Scheich, most recently as a Director.
Qatar’s digital assets ecosystem: market-building, collaboration and innovation
What is the status of the market for digital assets in Qatar?
The market for digital assets in Qatar is still in its early stages. While it is growing rapidly, many companies are still in an experimental phase. Thus, Qatar offers early mover advantages to companies looking to make their mark in the international digital asset business. To encourage innovation and collaboration in commercializing digital asset services, the QFC has launched initiatives such as the Innovation Dome, of which the Digital Assets Lab is a significant part. The Digital Assets Lab offers an incubation program that grants access to infrastructure and resources while forming the basis of an early market entry under a limited license. Due to such initiatives, interest from major banks and institutions is growing, and relevant infrastructure is gradually being set up.
The QFC is also working closely with international partners, such as The Hashgraph Association, R3, as well as local fintech companies and authorities, such as the Qatar Central Bank, Qatar Financial Market Authority, and local ministries and governmental bodies, to develop digital asset use cases and foster the development of a digital asset ecosystem. Moreover, the Qatar Investment Authority (QIA) is also fueling innovation through the countryโs first venture capital (VC) fund of funds program, aiming to invest USD 1 billion in emerging technology through venture capital and studio funding.
Qatar as an attractive centre for digital assets in the Middle East
What makes Qatar an attractive digital assets hub?
A crucial feature of the Qatari market for digital assets is its streamlined and fast-paced regulatory decision-making processes, in contrast to the lengthy and complex processes in other regions. Without significant legislative barriers, Qatar can implement policies quickly, positioning itself as an agile player in the global digital asset market. Furthermore, the country is actively building a robust infrastructure to support blockchain and digital assets, involving major global tech players. Moreover, Qatar boasts abundant liquidity, making it highly attractive to companies seeking financing backed by strong local and international support.
Qatar also offers clear incentives for foreign companies involved in digital assets. At the QFC, foreign companies can benefit from 100% foreign ownership without the need for a local partner, unlike most other jurisdictions in the region. Additionally, fintech companies benefit from minimal capital requirements and streamlined supervisory processes.
Moreover, Qatarโs strategic location makes it a gateway to Middle Eastern, Asian, and African markets. Its advanced IT infrastructure, including widespread 5G connectivity, coupled with strong government support for digitalization under the Qatar 2030 National Vision, further sets it apart from other markets. Public-private partnerships and a focus on regulatory clarity, innovation, and economic growth provide a collaborative environment not always seen in other financial hubs.
QFC’s digital assets framework
The QFC has recently published a framework for digital assets. How does this framework differentiate itself from regulatory initiatives in other markets, and what is the QFCโs general approach to regulation?
Qatarโs framework for digital assets, launched on September 1, stands out with a flexible, principle-based approach, contrasting with the more rigid and prescriptive regulatory frameworks in other regions. In Qatar, the focus was set on tokenization, bypassing initial concerns around cryptocurrencies and stablecoins that have slowed progress in other regions. This move gives Qatar ideal conditions for the adoption of tokenization for real-world assets.
One major technical difference is the QFCโs use of a tech-neutral framework that allows companies to choose how they meet cybersecurity and compliance standards. This approach offers significantly more flexibility than the detailed regulatory technical standards of other regions. This risk-based regulatory model, especially in areas like token issuance and validation, grants fintech companies more freedom to define their compliance mechanisms, as opposed to more structured, template-driven regulations. Decision-making speed in Qatar is another key differentiator. With fewer legislative hurdles compared to other regions, regulatory updates are rolled out quickly, enabling companies to adapt and innovate faster.
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Tokenised Sukuk
Could you elaborate on the use cases and perspective of tokenized Sukuk which is currently not such a common asset class outside the Islamic world?
Sukuk tokens represent asset-backed investments that avoid conventional interest. Sukuk, an Islamic financial certificate similar to a bond in classical finance, adheres to Sharia law by avoiding interest and speculative investments.
The tokenization of Sukuk therefore is a pioneering initiative that combines Islamic finance principles with modern distributed ledger technology, offering a unique investment opportunity that transcends religious boundaries. Unlike classical finance, Islamic finance prohibits speculative investments, interest and unethical business practices. Therefore, Sukuk tokens are an appealing asset for investors seeking ethical and sustainable investment opportunities with low risk.
One prominent use case we are specifically exploring is Green Sukuk, where tokenized assets are linked to environmentally sustainable projects. This aligns with both Islamic ethics and the global push for sustainable finance. By leveraging blockchain technology, tokenized Sukuk increase liquidity and accessibility on a global scale, attracting a diverse investor base beyond the Muslim world.
Qatarโs forward-thinking approach, supported by institutions such as the Qatar Development Bank and the Qatar Central Bank, together with the Qatar Financial Centre, is positioning digital assets and Islamic finance as global tools to foster ethical investment and financial inclusion. ย The Hub was created to support these efforts.
QFC’s future plans
What steps is the QFC taking to expand its role in the global digital asset ecosystem in the future?
The QFC is set on expanding its global reach and fostering deeper international connections. With partners like The Hashgraph Association and their USDย 50ย million Digital Assets Venture Studio in Qatar, R3, and Polygon, the goal is to move from proof-of-concept to real-world applications, thereby driving innovation in digital assets.
In this regard, QFC is excited about many initiatives in the region, particularly the Qatar Central Bankโs wholesale CBDC project, which aims to enhance payment solutions and address key challenges in the financial ecosystem.
QFCโs Digital Assets Lab already has a pipeline of more than 20 companies seeking regulatory approval, with a vision of licensed entities leading transformative projects. The QFC also aims to foster financial inclusion, particularly through fintech solutions such as remittances for expatriates, while striving to strengthen partnerships with Europe and beyond.
